The Financial Stability Board (FSB), an international body created by the G20, sees a potential risk in the massive adoption of the stablecoions or currencies anchored to the value of fiat currencies. This is how the organization establishes it in its report Regulation, supervision and inspection of »Global Stablecoins Agreements», published this week.
For the FSB, a “stablecoin global “is one” with potential reach and adoption in multiple jurisdictions and and the ability to achieve substantial volume. ” According to the organization, the current risks associated with the use of these types of currencies are few. In particular, this is due to a ‘relatively small scale’ and ‘limited use cases’ for stablecoins currently.
He report states that the use of stablecoins as a means of payment or a store of value “could increase significantly in the future, possibly on a large scale and in multiple jurisdictions.” And in that scenario, your risk analysis could change, adds the FSB.
Among the main threats, the organization considered that extensive use of stablecoins as a store of value would expose its users to risks in the event of possible fluctuations in the value of the currency, possibly caused by variations in the underlying assets of the stablecoin. “Even a moderate variation in its value can cause significant fluctuations in the wealth of users,” he claimed.
These negative effects would have a greater incidence in emerging economies, where the use of stablecoins as a store of value, compared to advanced economies.
In the eyes of the agency, the risk is extensive and even includes infrastructure problems. In this regard, they considered that a sustained use of these digital currencies for payments of all kinds “could test the capacity of the support infrastructure to handle high volumes of transactions and the financing conditions of the financial system in general.”
FSB recommendations regarding stablecoins
The FSB document contemplates a series of recommendations for governments, in terms of regulation, supervision and even vigilance on the use of stablecoins with potential global reach.
Among these recommendations, the call to the authorities to “Apply full regulatory, supervisory and surveillance requirements” for the use of these currencies in their jurisdictions, in addition to complying with international regulations and maintaining broad cooperation between nations “to guarantee comprehensive regulation.”
Furthermore, the report calls on governments to ensure “effective risk management frameworks”. In particular, focusing on the management of reserves that support the stablecoin, operational and infrastructure guarantees, cybersecurity and policies against money laundering and terrorist financing.
The international body’s recommendations also include the development of systems for collecting, storing and safeguarding the data of its users. In addition, there must be “legal clarity” so that users understand the regulatory requirements and “the enforceability of any right of redemption and its process, when appropriate.”
Recently, the world’s attention to stablecoins it has been clearly increasing. The European Central Bank, a member of the FSB, came to consider that these currencies could even represent a competition for the digital euro, version of the central bank digital currency (CBDC) region, one of the trends pursued by central authorities around the world.
The FSB has more than 20 members, between countries and organizations. In addition to the European Central Bank, the list includes the International Monetary Fund and the World Bank. Among its member countries, some with clear approaches to the creation of their CBDCs stand out.
Among those countries, we find China, which recently accelerated the development of its digital yuan, as reported CriptoNoticias; The United States, whose digital version of the dollar also It is in process; like Brazil, in the Latin American region.